📊 MGYR Key Takeaways
Is Magyar Bancorp, Inc. (MGYR) a Good Investment?
Magyar Bancorp demonstrates strong revenue growth (+71.5% YoY) and solid operating margins (29%), but is severely hampered by a critically low interest coverage ratio of 0.9x, indicating the company cannot cover interest expenses with operating income. The very weak ROE (5.0%) and ROA (0.6%) compound concerns about capital efficiency, though positive free cash flow generation offers some support.
Magyar Bancorp shows solid near-term earnings momentum, with revenue up 71.5% year over year and net income up 25.4%, while maintaining healthy operating and net margins for the latest period. However, the quality of that growth is tempered by very low ROA and ROE, plus weak interest coverage, which suggests the balance sheet is not yet generating strong returns despite improved profitability. Fundamentally, this looks like a stable but not yet compelling bank story unless returns on capital improve further.
Why Buy Magyar Bancorp, Inc. Stock? MGYR Key Strengths
- Exceptional revenue growth of 71.5% year-over-year
- Strong operating margin of 29% and net margin of 20.9%
- Solid free cash flow generation with 22.3% FCF margin and $6.6M FCF
- Moderate leverage with 0.40x debt-to-equity ratio
- EPS growth of 26.8% year-over-year
- Strong year-over-year revenue and earnings growth in the latest period
- Healthy operating margin of 29.4% and net margin of 21.5%
- Positive operating cash flow and free cash flow with modest reported leverage
MGYR Stock Risks: Magyar Bancorp, Inc. Investment Risks
- Critical interest coverage ratio of 0.9x signals inability to cover interest expenses from operating income, posing solvency concerns for a financial institution
- Extremely low return on equity (5.0%) and return on assets (0.6%) indicate severely underperforming capital deployment
- Net income growth (25.4%) significantly trails revenue growth (71.5%), suggesting rising operational costs or margin compression despite top-line expansion
- Very low ROA of 0.3% and ROE of 2.6% indicate weak capital efficiency
- Interest coverage of 0.5x suggests limited earnings cushion versus interest burden
- As a financial institution, earnings quality may be sensitive to funding costs, credit conditions, and margin compression
Key Metrics to Watch
- Interest coverage ratio trend toward 1.2x+ minimum
- Return on equity improvement trajectory toward 10%+
- Net income growth rate relative to revenue growth sustainability
- ROA and ROE improvement
- Net interest income and interest coverage trend
Magyar Bancorp, Inc. (MGYR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MGYR Profit Margin, ROE & Profitability Analysis
MGYR vs Finance Sector: How Magyar Bancorp, Inc. Compares
How Magyar Bancorp, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Magyar Bancorp, Inc. Stock Overvalued? MGYR Valuation Analysis 2026
Based on fundamental analysis, Magyar Bancorp, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Magyar Bancorp, Inc. Balance Sheet: MGYR Debt, Cash & Liquidity
MGYR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Magyar Bancorp, Inc.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.23 reflects profitable operations.
MGYR Revenue Growth, EPS Growth & YoY Performance
Magyar Bancorp, Inc. Dividends, Buybacks & Capital Allocation
MGYR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Magyar Bancorp, Inc. (CIK: 0001337068)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MGYR
What is the AI rating for MGYR?
Magyar Bancorp, Inc. (MGYR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 63% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MGYR's key strengths?
Claude: Exceptional revenue growth of 71.5% year-over-year. Strong operating margin of 29% and net margin of 20.9%. ChatGPT: Strong year-over-year revenue and earnings growth in the latest period. Healthy operating margin of 29.4% and net margin of 21.5%.
What are the risks of investing in MGYR?
Claude: Critical interest coverage ratio of 0.9x signals inability to cover interest expenses from operating income, posing solvency concerns for a financial institution. Extremely low return on equity (5.0%) and return on assets (0.6%) indicate severely underperforming capital deployment. ChatGPT: Very low ROA of 0.3% and ROE of 2.6% indicate weak capital efficiency. Interest coverage of 0.5x suggests limited earnings cushion versus interest burden.
What is MGYR's revenue and growth?
Magyar Bancorp, Inc. reported revenue of $29.5M.
Does MGYR pay dividends?
Magyar Bancorp, Inc. pays dividends, with $1.8M distributed to shareholders in the trailing twelve months.
Where can I find MGYR SEC filings?
Official SEC filings for Magyar Bancorp, Inc. (CIK: 0001337068) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MGYR's EPS?
Magyar Bancorp, Inc. has a diluted EPS of $0.98.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MGYR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Magyar Bancorp, Inc. has a HOLD rating with 63% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MGYR stock overvalued or undervalued?
Valuation metrics for MGYR: ROE of 5.0% (sector avg: 12%), net margin of 20.9% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy MGYR stock in 2026?
Our dual AI analysis gives Magyar Bancorp, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MGYR's free cash flow?
Magyar Bancorp, Inc.'s operating cash flow is $6.9M, with capital expenditures of $333.0K. FCF margin is 22.3%.
How does MGYR compare to other Finance stocks?
Vs Finance sector averages: Net margin 20.9% (avg: 25%), ROE 5.0% (avg: 12%), current ratio N/A (avg: 1.2).